Compute operating cash flows using the direct method. Tidwell Company has provided the following partial comparative balance
Question:
Compute operating cash flows using the direct method. |
Tidwell Company has provided the following partial comparative balance sheets and the income statement for 20X2.
Tidwell Company |
Comparative Balance Sheets |
At December 31, 20X1 and 20X2 |
1 | 20X1 | 20X2 | |
2 | Current assets: | ||
3 | Accounts receivable | $350,000.00 | $282,000.00 |
4 | Inventories | 126,000.00 | 147,000.00 |
5 | Current liabilities: | ||
6 | Accounts payable | 299,000.00 | 239,000.00 |
Tidwell Company |
Income Statement |
For the Year Ended December 31, 20X2 |
1 | Revenues | $1,208,000.00 |
2 | Gain on sale of equipment | 55,000.00 |
3 | Cost of goods sold | (648,000.00) |
4 | Depreciation expense | (123,000.00) |
5 | Interest expense | (28,000.00) |
6 | Net income | $464,000.00 |
Tidwell Company |
Cash Flows from Operating Activities, Direct Method |
For the Year Ended December 31, 20X2 |
1 | Income Statement | Adjustments | Cash Flows | |
2 | Revenues | |||
3 | Gain on sale of equipment | |||
4 | Cost of goods sold | |||
5 | Depreciation expense | |||
6 | Interest expense | |||
7 | Net income | |||
8 | Net cash from operating activities |
Managerial Accounting The Cornerstone of Business Decision Making
ISBN: 978-1337115773
7th edition
Authors: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger